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House File 668 - EnrolledAn Actconcerning alcoholic beverage control, relating to
limitations on business interests of certain manufacturers,
wholesalers, and retailers of alcoholic beverages.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 123.3, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION. 24A. “Institutional investor” means a
person who maintains a diversified portfolio of investments
through a state or federally chartered bank, a mutual fund,
a retirement plan or account created by an employer, the person, or another individual to provide retirement benefits or deferred compensation to the person, a private investment firm,
or a holding company publicly traded on the New York stock
exchange, the American stock exchange, or NASDAQ stock market
and who has a majority of investments in businesses other than
businesses that manufacture, bottle, wholesale, or sell at
retail alcoholic beverages.
Sec. 2. Section 123.45, subsection 1, unnumbered paragraph
1, Code 2019, is amended to read as follows:
A Subject to such exceptions as otherwise authorized
under this chapter, a person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages,
wine, or beer excluding an institutional investor, or any
jobber, representative, broker, employee, or agent of such a
person, shall not do any of the following:
Sec. 3. Section 123.45, subsection 1, paragraphs c and d,
Code 2019, are amended to read as follows:
c. Directly or indirectly be interested in the ownership,
conduct, or operation of the business of another licensee or
permittee authorized under this chapter to sell at retail,
unless the licensee or permittee authorized under this
chapter to sell at retail does not purchase or sell the
alcoholic beverages of the person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages.
However, the licensee or permittee authorized under this
chapter to sell at retail may purchase and sell the wine of the
person engaged in the business of manufacturing wine that is
not native wine provided the licensed premises is the principal
office, as defined in section 490.140, of the person.
-1- d. Hold a retail liquor control license or retail wine or
beer permit, unless the licensee or permittee holding a retail
liquor control license or retail wine or beer permit does not
purchase or sell the alcoholic beverages of the person engaged
in the business of manufacturing, bottling, or wholesaling
alcoholic beverages. However, a person engaged in the business
of manufacturing wine that is not native wine may purchase and
sell the person’s wine under the authority of a special class
“C” liquor control license and a class “B” wine permit provided
the licensed premises is the principal office, as defined in
section 490.140, of the person.
Sec. 4. Section 123.45, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 1A. Notwithstanding any provision of law to
the contrary, a broker, employee, or agent of a person engaged
in the business of manufacturing, bottling, or wholesaling
alcoholic beverages may be a broker, employee, or agent of
another person engaged in the business of manufacturing,
bottling, or wholesaling alcoholic beverages or a broker,
employee, or agent of a business authorized under this chapter
to sell alcoholic beverages at retail as long as the broker,
employee, or agent is not an officer, owner, director, or
employee in a position to exercise any control or influence
over the types of sales or the purchasing of alcoholic
beverages in either position of employment.
NEW SUBSECTION. 4. The exceptions established by
subsection 1 to the general prohibition against tied interests
shall be limited to their express terms so as not to undermine
the general prohibition and shall therefore be construed
accordingly, and shall not be construed to affect exceptions
to the general prohibition against tied interests as otherwise
authorized under this chapter.
Sec. 5. Section 123.130, subsection 1, Code 2019, is amended
to read as follows:
1. a. Any person holding a class “A” beer permit issued
-2-by the division shall be authorized to manufacture and sell,
or sell at wholesale, beer for consumption off the premises,
such sales within the state to be made only to persons holding
subsisting class “A”, “B”, or “C” beer permits, both a class
“C” native wine permit and a class “A” wine permit pursuant
to section 123.178B, subsection 4, or liquor control licenses
issued in accordance with the provisions of this chapter.
However, a person holding a class “A” beer permit issued by
the division who also holds a brewer’s notice issued by the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury shall be authorized to sell, at
wholesale, no more than thirty thousand barrels of beer on an
annual basis for consumption off the premises to a licensee or
permittee authorized under this chapter to sell beer at retail.
b. A class “A” or special class “A” beer permit does not
grant authority to manufacture wine as defined in section
123.3, subsection 48.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 668, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorec/rn/md
limitations on business interests of certain manufacturers,
wholesalers, and retailers of alcoholic beverages.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 123.3, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION. 24A. “Institutional investor” means a
person who maintains a diversified portfolio of investments
through a state or federally chartered bank, a mutual fund,
a retirement plan or account created by an employer, the person, or another individual to provide retirement benefits or deferred compensation to the person, a private investment firm,
or a holding company publicly traded on the New York stock
exchange, the American stock exchange, or NASDAQ stock market
and who has a majority of investments in businesses other than
businesses that manufacture, bottle, wholesale, or sell at
retail alcoholic beverages.
Sec. 2. Section 123.45, subsection 1, unnumbered paragraph
1, Code 2019, is amended to read as follows:
A Subject to such exceptions as otherwise authorized
under this chapter, a person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages,
wine, or beer excluding an institutional investor, or any
jobber, representative, broker, employee, or agent of such a
person, shall not do any of the following:
Sec. 3. Section 123.45, subsection 1, paragraphs c and d,
Code 2019, are amended to read as follows:
c. Directly or indirectly be interested in the ownership,
conduct, or operation of the business of another licensee or
permittee authorized under this chapter to sell at retail,
unless the licensee or permittee authorized under this
chapter to sell at retail does not purchase or sell the
alcoholic beverages of the person engaged in the business of
manufacturing, bottling, or wholesaling alcoholic beverages.
However, the licensee or permittee authorized under this
chapter to sell at retail may purchase and sell the wine of the
person engaged in the business of manufacturing wine that is
not native wine provided the licensed premises is the principal
office, as defined in section 490.140, of the person.
-1- d. Hold a retail liquor control license or retail wine or
beer permit, unless the licensee or permittee holding a retail
liquor control license or retail wine or beer permit does not
purchase or sell the alcoholic beverages of the person engaged
in the business of manufacturing, bottling, or wholesaling
alcoholic beverages. However, a person engaged in the business
of manufacturing wine that is not native wine may purchase and
sell the person’s wine under the authority of a special class
“C” liquor control license and a class “B” wine permit provided
the licensed premises is the principal office, as defined in
section 490.140, of the person.
Sec. 4. Section 123.45, Code 2019, is amended by adding the
following new subsections:
NEW SUBSECTION. 1A. Notwithstanding any provision of law to
the contrary, a broker, employee, or agent of a person engaged
in the business of manufacturing, bottling, or wholesaling
alcoholic beverages may be a broker, employee, or agent of
another person engaged in the business of manufacturing,
bottling, or wholesaling alcoholic beverages or a broker,
employee, or agent of a business authorized under this chapter
to sell alcoholic beverages at retail as long as the broker,
employee, or agent is not an officer, owner, director, or
employee in a position to exercise any control or influence
over the types of sales or the purchasing of alcoholic
beverages in either position of employment.
NEW SUBSECTION. 4. The exceptions established by
subsection 1 to the general prohibition against tied interests
shall be limited to their express terms so as not to undermine
the general prohibition and shall therefore be construed
accordingly, and shall not be construed to affect exceptions
to the general prohibition against tied interests as otherwise
authorized under this chapter.
Sec. 5. Section 123.130, subsection 1, Code 2019, is amended
to read as follows:
1. a. Any person holding a class “A” beer permit issued
-2-by the division shall be authorized to manufacture and sell,
or sell at wholesale, beer for consumption off the premises,
such sales within the state to be made only to persons holding
subsisting class “A”, “B”, or “C” beer permits, both a class
“C” native wine permit and a class “A” wine permit pursuant
to section 123.178B, subsection 4, or liquor control licenses
issued in accordance with the provisions of this chapter.
However, a person holding a class “A” beer permit issued by
the division who also holds a brewer’s notice issued by the
alcohol and tobacco tax and trade bureau of the United States
department of the treasury shall be authorized to sell, at
wholesale, no more than thirty thousand barrels of beer on an
annual basis for consumption off the premises to a licensee or
permittee authorized under this chapter to sell beer at retail.
b. A class “A” or special class “A” beer permit does not
grant authority to manufacture wine as defined in section
123.3, subsection 48.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 668, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorec/rn/md